People’s Pension has enacted an updated climate approach, aiming to align its investment strategy more closely with real-world developments and long-term member outcomes.

The scheme said the revised approach was designed to better manage climate transition risks to asset values, adopting a more granular, bottom-up methodology that reflected differences across markets, sectors and asset classes.

As part of this, climate-related target setting will now be assessed on a case-by-case basis.

While the scheme has reaffirmed its commitment to a net-zero ambition aligned with the Paris Agreement, it has moved away from a single, top-down 1.5°C-aligned portfolio target as a binding investment constraint.

The decision follows growing…